Cyprus pension reform bill faces parliamentary discussion in October

The Cypriot government is moving forward with its pension reform plans, with Labor Minister Marinos Mousiouttas confirming that the bill will be submitted to the House of Representatives by the end of September. Parliamentary discussions are scheduled to commence on October 13. During a session of the Labor Advisory Board on September 21, the Minister emphasized the need for social partners to expedite the review process and provide their feedback before the legislation enters the committee stage.

The reform is projected to cost approximately 820 million euros over a six-year period. Of this total, 486 million euros will be covered by the state, while 334 million euros will be funded by the Social Insurance Fund. Minister Mousiouttas clarified that the reform will be implemented through separate legislation for social insurance and provident funds, with the first phase focusing on the zero and first pillars of the system. While employer and labor organizations have expressed general support for the reform, they have raised several questions regarding long-term fiscal sustainability, future benefit levels, and the underlying assumptions of the proposal. Social partners are expected to present their formal recommendations at the next meeting on September 24.